Kimberly Palmer, senior editor for U.S. News Money, says the best way to get ahead and build up savings is to put aside as much as you can, when you can.
“You should be aiming to save 20 percent, or even more when you look at both your retirement savings and your shorter-term savings,” Palmer says.
That number may sound ambitious, but preparing for unforeseen expenses will help keep you out of as much debt as possible down the road.
Build a Buffer to Keep Debt at Bay
Planning ahead of time for major life transitions, such as buying a home or having children, is important to keep in mind, Palmer says.
You may feel like you have a lot of money when you save up cash for a down payment on a house or condo, but expenses do not stop there.
“A lot of people don’t realize how expensive it is after you buy a house or have children — some of these major transitions that happen in your 30s — and there are big costs that come up,” Palmer says. “There are times in your 30s when you will be very crunched, especially after big transitions